Economy
Banks sell $16m at Tk106 interbank rate
Banks transacted $16 million among themselves at Tk106 per dollar on Tuesday, the second day since the interbank forex market resumed after five months with banks agreeing on uniform rates for exporters and remitters.
The interbank rate was Tk103.50 a day prior.
On Tuesday, banks encashed remittance and export proceeds at the rate set by the Bangladesh Foreign Exchange Dealers Association (Bafeda).
Of the sales, the highest of $2 million was sold by City Bank, Bangladesh Development Bank and Eastern Bank.
Mashrur Arefin, vice chairman of the Association of Bankers, Bangladesh (ABB) and also MD of City Bank, told, “I am happy that we sold $2 million in the interbank market today. Two smaller banks needed dollars badly. We sold them at Tk105 rate. My buying cost was higher than that, but I don’t actually look at profit and loss.
“I basically take a view of the market – whether the dollar will go below Tk105. The underlying assumption is that an active interbank market will essentially diminish the cost of remittance dollars.”
Last Sunday, Bafeda and the ABB decided that the dollar price will be determined by calculating the average price of foreign exchange and export earnings in five working days. All banks will encash export proceeds and collect remittances at the same rate.
Last Sunday, the maximum remittance collection rate was Tk108. Bafeda set a maximum of Tk99 per dollar to encash export income.
However, banks will settle import Letter of Credit (LC), using a weighted average buying cost at a maximum rate of one taka higher.
The leaders of the organization said the rate will change after a few days.
Treasury officials, however, said not all banks are profiting Tk1 per dollar, with some adding a maximum of Tk0.30-0.50.
According to that, yesterday the banks were settling LCs at a maximum of Tk108.50 and minimum of Tk105.
They said banks had agreements with some exchange houses which meant remittance dollars were received from those at a slightly lower rate.
No bank, however, has charged a rate higher than Tk108.
In case of export proceeds, exporters have received the rate of Tk99 fixed by Bafeda against the dollar.
Besides, exchange houses have been given a maximum of Tk108 per dollar for remittances.
Selim RF Hussain, ABB chairman and managing director of Brac Bank, said due to the decision taken by ABB and Bafeda, some comfort was returning to the market.
He, however, said it would still take time.
“We have introduced these rates in close coordination with the Bangladesh Bank. Our main objective is to bring stability to the market. It will probably happen in a few days.”
Although banks followed the interbank rate, the Bangladesh Bank’s rate remained the same. On Tuesday, the central bank sold dollars at Tk96, after it increased the price by Tk1 on Monday.
Central bank spokesperson Serajul Islam said $45 million dollars were sold yesterday at a rate of Tk96 for government imports and imports of daily essentials.
He said now the banks’ dollar rate will be uploaded on the central bank’s website, but the central bank’s rate would not be available there for now.
In November, the overall point-to-point inflation rate in the country exhibited a marginal decline to 9.49 percent, attributed primarily to decreases in both food and non-food inflation.
The monthly Consumer Price Index (CPI) released by the Bangladesh Bureau of Statistics (BBS) reported a general inflation rate of 9.93 percent in October. Specifically, food inflation decreased to 10.76 percent in November from 12.56 percent in October, while non-food inflation saw a slight dip to 8.16 percent from the 8.30 percent recorded in the previous month.
Breaking down the data, the rural areas experienced a slight decrease in the overall inflation rate to 9.62 percent in November, down from 9.99 percent in October. Similarly, urban areas witnessed a decline in the general inflation rate to 9.16 percent in November, compared to 9.72 percent in October.
The national wage index rate for November increased to 7.72 percent, showing a slight uptick from the 7.69 percent reported in October.
Export earnings for the current fiscal year (FY24) from July to November reached $22,232.28 million, marking a 1.30 percent growth compared to the same period last year, according to the latest data from the Export Promotion Bureau (EPB).
In the corresponding period of the previous fiscal year (FY23), export earnings amounted to $21,946.07 million. However, there was a notable decline in single-month export earnings for November, witnessing a 6.05 percent fall, reaching $4,784.81 million, as opposed to $5,092.56 million in November of the previous year.
The Ready-Made Garments (RMG) sector remained the primary contributor to export earnings during July-November, securing $18,835.65 million. Within this category, knitwear exports accounted for $10,989.42 million, followed by woven garments at $7,846.23 million.
Notable performances in other exportable categories during the July-November period include primary commodities at $601.42 million, agriculture products at $420.59 million, manufactured commodities at $21,630.86 million, plastic products at $92.60 million, leather and leather products at $427.02 million, jute and jute goods at $361.91 million, and specialized technologies [remaining text not provided].
The Foreign Minister, in a meeting today with the outgoing Kosovo ambassador Güner Ureya, urged Kosovo to recruit skilled human resources and consider importing high-quality readymade garments and pharmaceuticals from Bangladesh. The ambassador paid a farewell call on the Foreign Minister at the foreign ministry this afternoon.
During the meeting, the Foreign Minister commended the ambassador for actively advancing bilateral relations and emphasized the importance of enhancing people-to-people contact for stronger mutual relations. The outgoing envoy, in turn, expressed appreciation for Bangladesh’s progress and development across various sectors. Additionally, the envoy briefed the Foreign Minister on the shared interest of business communities in both Bangladesh and Kosovo to boost trade and investment between the two countries.
Discussions also encompassed topics such as women empowerment and the necessity of peace for sustainable development. The outgoing envoy lauded the people, culture, and the beauty of Bangladesh.
